Choose a trustworthy tax preparer and how to avoid scams

Tax season will be underway soon, and taxpayers who are seeking assistance in completing forms should begin their search for a trustworthy and qualified tax preparer.

The Better Business Bureau of Greater Houston and South Texas is encouraging taxpayers to properly research professional tax preparers or accountants before hiring, to help avoid mistakes, scams and even tax identity theft.

The BBB offers these tips on choosing a trustworthy tax preparer and how to avoid scams:

• Verify credentials. Ideally, your tax preparer should be a certified public accountant, a tax attorney or an enrolled agent. Make sure they have a Preparer Tax Identification Number (PTIN).

• Research the company. Search the company on BBBHouston.org to find a BBB Business Review containing a BBB rating and three-year complaint history.

Investigate whether the preparer has any questionable history with the Texas State Board of Public Accountancy (for CPAs), the State Bar Association (for attorneys) or the IRS Office of Professional Responsibility (OPR) for enrolled agents.

• Don’t fall for the lure of a big refund. Be wary of a tax-prep service promising larger refunds than the competition. Avoid companies who base fees on a percentage of the refund.

• Know how to contact your tax preparer year round. Many tax shops/offices set up services for the months leading up to the deadline.

In case there is an issue with your filing, make sure you can contact the professional who prepared the IRS tax forms.

• Read the contract carefully. Read the service contracts closely to ensure you understand issues such as how much it is going to cost for the service, how the cost will be affected if preparation is more complicated and time consuming than expected, and whether the tax preparer will represent you in the case of an audit. A paid preparer is required by law to sign your return and must give you a copy of your tax return.

Many tax shops/offices set up services for the months leading up to the deadline. In case there is an issue with your filing, make sure you can contact the professional who prepared the IRS tax forms.

• File early. The sooner you file your taxes, the better to help avoid identity theft.

• File online. The IRS says filing online and choosing direct deposit for any refund remains the fastest and safest way to file. Make sure you’re entering your information on a website that is secure and encrypted. Con artists create imposter sites around this time of year to trick you into entering your personal information, which could lead to identity theft.

• Know the IRS will not call demanding money. If there is an issue with your taxes, the IRS will first contact you by mail prior to calling you.

Any phone calls without prior written notification, emails or text messages you receive from someone representing the IRS or the Department of Treasury and advising you of a tax debt, will likely be scams. Scam attempts can be reported to the BBB. The Better Business Bureau is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Visit www.bbbhouston.org or call 713-868-9500. Leah Napoliello is senior director of Investigative Services with the BBB of Greater Houston and South Texas. Send questions to Leah Napoliello, Better Business Bureau, 1333 West Loop South, Suite 1200, Houston, TX 77027, or e-mail lnapoliello@bbbhou.org. Include your mailing address and phone number.